Jet wraps up stake sale deal with Etihad Airways

Nov 21 2013, 02:10 IST
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SummaryThe Indian carrier becomes the first beneficiary of the relaxed foreign direct investment norms in aviation.

Jet Airways on Wednesday announced the conclusion of its deal with Etihad Airways and allotted shares amounting to 24 per cent stake to the Abu Dhabi-based carrier.

With the closure of this deal, Jet has become the first beneficiary of the relaxed foreign direct investment norms in aviation that was announced in September last year.

Jet Airways has issued and allotted 27,263,372 equity shares of a face value of Rs 10 each at a price of Rs 754.7361607 per equity share on a preferential basis to Etihad Airways, said a release issued by the airline. The allotment was approved by the board of the airline that met today. The announcement for the deal worth Rs 2,058 crore has come after the Competition Commission of India (CCI) approved the proposed acquisition of stakes in Jet Airways. Post the closure of this transaction, the promoters will own 51 per cent in the airline, Etihad will own 24 per cent and the rest will be with the public.

The release added that consequent to the above allotment, the paid up share capital of Jet Airways stands increased to 11,35,97,383 equity shares of Rs 10 each.

Commenting on the conclusion of the deal, Jet Airways chairman Naresh Goyal said that the foreign investment in the aviation sector will benefit all the stake holders in the country. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefiting our customers, he was quoted in a release.

The Jet board also approved sale of the Jet Privilege Frequent Flyer Programme business to its subsidiary Jet Privilege Pvt Ltd , which is subject to the approval of the CCI.

The Indian carrier also announced that Etihad

chief executive officer

James Hogan and chief financial officer James Rigney, have been appointed on its board as nominee directors of Etihad.

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